Softbank representative Munish Varma resigns from Paytm, PB Fintech boards
Softbank managing partner Munish Ravinder Varma has resigned from the board of the digital financial services company One97 Communications, which operates under the Paytm brand, and PB Fintech, according to regulatory filings by both companies on Tuesday.
Softbank Vision Funds India Holdings (Cayman) holds a 17.47 per cent stake in Paytm.
“Munish Ravinder Varma , Non-executive, Non-Independent Director of the Company, has tendered his resignation vide resignation letter dated March 14, 2022, with effect from the closure of business hours on March 14, 2022, due to personal commitments and other preoccupations,” Paytm said in a filing.
PB Fintech, which owns brands like Policy Bazaar, Paisa Bazaar also announced the resignation of Varma from its board.
SVF holds a 5.77 per cent stake in PB Fintech.
Japanese investor Softbank is pulling out its representative from the boards of Indian listed entities Paytm and Policy Bazaar as part of its global policy.
There will be, however, no change in investment made by Softbank in these companies, according to a source aware of the development.
“As part of global policy, Softbank’s representative will step down from the board of listed companies in India. At present, there are two Indian entities in this case- Paytm and Policy Bazaar. These companies have been informed about the decision,” another source aware of the development said.
The source said that Softbank in 90 per cent of the portfolio companies globally has exited within six months.
Shares of One97 Communications Ltd further tanked nearly 13 per cent on Tuesday.
The stock tumbled 12.28 per cent to settle at Rs 592.40 on the BSE. On the NSE, it plunged 12.71 per cent to settle at Rs 589.
Shares of One97 Communications had on Monday declined nearly 13 per cent after the RBI asked Vijay Shekhar Sharma-promoted Paytm Payments Bank to stop opening new accounts amid “material supervisory concerns” observed in the bank.
In two days, the company’s market valuation plunged by Rs 11,809.43 crore to Rs 38,418.57 crore on the BSE.